At a recent conference in Madrid, global investors told emerging markets that building a sustainable startup ecosystem requires local capital to support homegrown companies rather than funneling funds to established hubs like Silicon Valley. The remarks, reported by BusinessWorld, underscored the need for domestic investors to play a greater role in fostering innovation.
Speakers argued that when emerging-market investors pour capital into Silicon Valley, they deprive local startups of critical early-stage funding. This dynamic can stall the development of local tech ecosystems and perpetuate dependence on foreign venture capital.
The call comes as several emerging economies seek to boost their startup scenes amid global tech slowdowns. Building local investor confidence and creating incentives for domestic funding were cited as key steps toward achieving long-term ecosystem growth.